Exam Questions Hartley Retailing And Wholesaling Ch.16 - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.
Chapter 16
Retailing and Wholesaling
Multiple Choice Questions
1. | The revolutionary new __________ resembles a pair of eyeglasses with a small display screen visible to the wearer. Image and voice recognition capabilities allow retail clerks to check manuals for technical information, verify stock inventories, place orders, or even check out customers from anywhere in the store.
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2. | The overlay of stored images or graphics with the real-world environment creates what type of reality for wearers of these new Google Glass digital eyeglasses?
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3. | All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use are referred to as
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4. | Retailing includes all activities involved in the
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5. | Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions, but retailing also creates
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6. | The __________ provided by retailers create value for consumers.
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7. | The four utilities offered to consumers through retailing are
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8. | Wells Fargo is one of the best-run banks in the United States. It reaches retail customers through 9,000 stores, a worldwide network of 12,000 ATMs, and its online banking service. Which utility does Wells Fargo best provide?
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9. | Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery service is particularly valuable to someone who has been left stranded without transportation. By making it easy to rent temporary transportation, Enterprise is emphasizing which utility?
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10. | CarMax dealers have adopted a "no-hassle, no-haggle" sales policy that eliminates the need for negotiating. Instead, all customers are offered the same price. Test drives, financing, trade-ins, and leasing are all offered to encourage customers to purchase a car. Which utility does CarMax best provide?
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11. | Albertsons Supermarket accepts debit and credit cards as well as cash and checks for purchases. Its acceptance of various forms of payment provides its customers with __________ utility.
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12. | A restaurant that offers food made exactly to each customer's preference is providing __________ utility.
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13. | The ability to shop over the Internet 24 hours a day, seven days a week, provides consumers with __________ utility.
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14. | At the Christmas Tree Shop, customers can shop for Christmas gifts and decor at any time of the year. What type of utility primarily does this store provide for its customers?
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15. | The Sports Authority is a sporting goods superstore that provides year-round inventory of equipment for just about any sport. Even during the off-season, equipment for seasonal sports is available at the Sports Authority. Which utility does the Sports Authority best provide?
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16. | Four of the 40 largest businesses in the United States are retailers—Walmart, Costco, Home Depot, and
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17. | Which of the following is one of the largest retailers in the United States?
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18. | Walmart's $485 billion in sales in 2014 surpassed the gross domestic product of all but __________ countries for that same year.
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19. | The greatest dollar amount of retail sales in the United States is generated by
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20. | The smallest dollar amount of retail sales in the United States is generated by
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21. | Outside the United States, large retailers include __________ in Japan, Carrefour in France, Metro Group in Germany, and Tesco in Britain.
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22. | Aeon, Carrefour, Tesco, and Metro Group are
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23. | The three key methods of classifying retail operations are
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24. | Which of the following is a commonly used method of retail outlet classification?
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25. | The __________ distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.
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26. | One method of classification describes whether a retailer is self-, limited-, or full-
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27. | Three __________ are provided by self-, limited-, and full-service retailers.
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28. | The degree of service provided to the customer from self-, limited-, and full-service retailers is referred to as
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29. | Level of service is used to describe the degree of service provided to the customer. Three levels of service are provided by self-, __________, and full-service retailers.
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30. | A method of classification that describes how many different types of products a store carries and in what assortment is referred to as a
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31. | According to the textbook, __________ provides third-party certification and offers guidance for retailers implementing new environmentally sound practices.
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32. | When Home Depot switched its in-store light fixture displays to compact fluorescent light and LED bulbs, painted the roofs of its stores white, and installed solar panels, it reduced its energy use by __________ percent.
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33. | There are three general forms of retail ownership: contractual system, corporate chain, and
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34. | There are three general forms of retail ownership: contractual system, independent retailer, and
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35. | There are three general forms of retail ownership: independent retailer, corporate chain, and
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36. | The most common form of retail ownership is the
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37. | Independent retailers account for most of the __________ retail establishments in the United States.
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38. | Most of the 1.1 million retail establishments in the United States are considered
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39. | Which form of retail outlet would most likely offer customers convenience, quality personal service, and lifestyle compatibility?
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40. | Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by
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41. | A form of ownership that involves multiple outlets under common ownership is referred to as
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42. | Bloomingdale's stores are part of __________ corporate chain.
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43. | Which of the following statements regarding corporate chains is most accurate?
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44. | Consumers benefit in dealing with retail corporate chains because
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45. | Consumers benefit in dealing with retail corporate chains because
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46. | The acronym RFID stands for
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47. | Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store. The firm also uses technologies such as __________ to improve the quality of information available about products.
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48. | Independently owned stores that band together to act like a chain are referred to as
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49. | The three basic types of contractual systems are
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50. | One way neighborhood grocers can take advantage of volume discounts commonly available to corporate chains is to
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51. | Neighborhood grocers that work together with several other independent grocers that all agree to buy their goods directly from food manufacturers is
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52. | Which method of retail outlet classification is most appropriate for describing franchise operations?
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53. | Franchising is a type of
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54. | In __________, an individual or firm contracts with a parent company to set up a business or retail outlet.
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55. | What type of contractual system describes a situation in which assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?
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56. | As a franchisor, 7-Eleven would assist a franchisee in selecting the store location, setting up the store, advertising, and
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57. | The two general types of franchises are
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58. | There are two general types of franchises: business-format franchises and __________ franchises.
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59. | A franchise where the franchisor provides step-by-step procedures for most aspects of the business is known as a
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60. | McDonald's, 7-Eleven, and Subway are examples of
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61. | As a business-format franchisor, McDonald's provides step-by-step procedures for most aspects of the business and
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62. | Subway is a popular
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63. | A franchise where the franchiser provides a few general guidelines to the franchisee is known as a
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64. | Ford and Coca-Cola represent which type of franchise?
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65. | Franchising is attractive for the franchisee because
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66. | Organizations that decide to franchise (franchisors) have __________ expansion costs accompanied by __________ control, compared to owning their own retail outlets.
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67. | By selling franchises, an organization __________ the cost of expansion and __________ its control compared to owning its own retail outlets.
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68. | The three commonly used terms to describe levels of service are
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69. | The level of service that requires the customers themselves perform many functions during the purchase process is
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70. | Off-price retailers, warehouse clubs, and grocery stores that require customers to bag their groceries provide what level of retail service?
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71. | Costco requires customers to perform many shopping functions during the purchasing process and all nonessential customer services have been eliminated. What level of service does Costco offer?
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72. | A number of U.S.-based retail chains use special checkout lanes and terminals instead of clerks. This is an example of what level of service?
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73. | All of the following retailers provide self-service to their customers except
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74. | General merchandise stores such as Walmart, Kmart, and Target are usually considered __________ retailers.
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75. | Outlets where customers are responsible for most shopping activities, although salespeople are available in some departments, would be classified as __________ retail outlets.
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76. | Loehmann's is an upscale, specialty retailer that sells name-brand designer fashions. A few salespeople are available for selected departments, but customers are responsible for most of their shopping activities. Loehmann's provides its consumers with
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77. | Target recently introduced its Target REDcard, where cardholders receive 5 percent back for each purchase. Target also allows customers to return merchandise within 30 days but still does not offer alteration services. Target offers what level of service to its customers?
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78. | Most specialty stores and department stores, which provide many services to their customers, are considered to be
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79. | Specialty stores and department stores, which provide many services to their customers, are frequently categorized by which level of service?
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80. | At which level of service would the customer perform the least number of functions?
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81. | Godiva Chocolatier invites consumers to stop by one of its stores for an unforgettable experience, including delectable chocolates, decorative gift collections, and unrivaled customer care. What type of retail service is Godiva offering?
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82. | Saks Fifth Avenue is an upscale retailer that offers designer brand women's apparel, fragrances, jewelry, and leather accessories. The retailer relies on superior service to sell its products and to retain its customers. Saks Fifth Avenue would be classified as
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83. | Kitchen Window is a one-stop treasure trove for cooks. The locally owned gourmet specialty store carries more than 14,000 items in stock. Its knowledgeable staff offers personalized service and will even gift-wrap your purchases free of charge. It also offers a shop for repairs should your appliances need maintenance. Kitchen Window is __________ retailer.
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84. | Williams-Sonoma is a specialty store that caters to customers who like to cook at home. It offers free cooking classes, has frequent demonstrations by cookbook authors, and has employees who are knowledgeable about food preparation. The sales staff helps customers make their selections. Williams-Sonoma is __________ retailer.
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85. | Nordstrom stores typically have 50 percent more salespeople on the floor than other retailers with stores of similar sizes. Its salespeople are renowned for their professional and personalized attention to customers. Nordstrom would be considered
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86. | A Woman's Place is a retail store, created and staffed by women, that offers products and services relating to maternity needs. For expectant mothers, it offers advice and personal shopping services, help with hair and/or make-up problems, and free delivery. A Woman's Place is an example of __________ retailer.
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87. | Retail outlets vary by their merchandise lines, the key distinction being the __________ of the items offered to customers.
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88. | Depth of product line refers to
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89. | A large assortment of each item within a product line in a store is referred to as
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90. | Your local Hallmark retailer carries thousands of greeting cards. You can find cards for a "twins" birthday, from my cat to yours, and many other unique occasions. This is an example of the __________ that the Hallmark retailer carries.
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91. | New Balance offers shoes for men, women, and children in many sizes and widths. It offers running, cross training, walking, golf, and other types of shoes. This is an example of the __________ that New Balance offers to its customers through its own stores or other retailers such as Foot Locker or Sports Authority.
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92. | The variety of different items a store carries is referred to as the
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93. | Your local Target retailer carries a variety of different items. You can find everything ranging from socks and DVDs to baby items and groceries. This is an example of the __________ carried by Target.
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94. | Stores that carry a considerable assortment (depth) of a related line of items are referred to as
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95. | Your local Safeway grocery store is most likely classified as which retail variation based on its considerable assortment (depth) of a related line of items within each line it carries?
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96. | Stores that carry tremendous depth in one primary line of merchandise are referred to as
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97. | Victoria's Secret, a nationwide chain, carries great depth in women's lingerie—and almost no other products. Victoria's Secret is an example of
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98. | Limited- and single-line stores are often referred to as
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99. | Mike's Camera is a retailer that carries a full line of professional and amateur cameras, develops and/or prints all types of film and digital photos, and even sells darkroom equipment. Mike's Camera is an example of
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100. | A retail outlet that focuses on one type of product at very competitive or discount prices and often dominates the market is referred to as a
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101. | Specialty discount stores that dominate the market are referred to as
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102. | Staples is a specialty discount retailer that focuses on one type of product—office supplies. Staples is an example of a
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103. | Stores that carry a broad product line, with limited depth, are referred to as
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104. | Stores like Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not an extensive number of items within each type. These retailers are known as
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105. | Offering several unrelated product lines in a single store is referred to as
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106. | Scrambled merchandising refers to
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107. | A drugstore that sells pharmaceuticals, beauty aids, camera equipment, nonperishable grocery items, and automobile motor oil is an example of a retailer using
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108. | Hypermarket refers to
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109. | In Europe, stores called __________ are based on the concept of one-stop shopping for consumers. Such retail stores, which use scrambled merchandising, typically encompass over 200,000 square feet of floor space and offer quality, variety, and low price for food and groceries and general merchandise.
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110. | Which of the following retailers is one of the largest hypermarkets in the world?
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111. | Located predominately in Europe, large stores (more than 200,000 square feet) that offer thousands of different food, grocery, and general merchandise products are referred to as
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112. | Which type of store gives shoppers the greatest variety of merchandise?
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113. | Meijer operates a chain of hypermarkets headquartered in Michigan, which means it
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114. | A supercenter is
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115. | Competition for the same or similar type of product or service between very dissimilar types of retail outlets as the result of a scrambled merchandising policy is referred to as
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116. | Intertype competition refers to competition between
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117. | __________ describes very dissimilar types of retail outlets that can compete with each other as a result of scrambled merchandising.
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118. | Fresh-cut flowers that were only available from florists can now be purchased at neighborhood supermarkets. This is an example of
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119. | Many supermarkets have in-store restaurants where a customer can buy prepared meals to take home or eat there. Supermarkets and restaurants that provide these same kinds of meals are engaged in __________ competition.
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120. | All of the following are forms of nonstore retailing except
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121. | Retailing that occurs outside a retail outlet, such as through direct marketing, direct selling, and automatic vending, is referred to as
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122. | Which of the following is an example of nonstore retailing?
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123. | Vending machines are an example of
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124. | Prices in vending machines tend to be higher because
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125. | About 34 percent of the products sold from vending machines are
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126. | Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics?
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127. | The 4.8 million vending machines currently operating in the United States generate more than __________ in annual sales.
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128. | Vending machines are popular with consumers; recent consumer satisfaction research indicates that __________ percent of consumers believe purchasing from a vending machine is equal to or superior to a store purchase.
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129. | Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile phones that transmit payments to vending machines wirelessly. This is an example of how vending machines can provide which type of utility?
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130. | Direct-mail and catalog retailing are examples of
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131. | An IKEA mail order catalog is an example of __________ retailing.
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132. | All of the following are reasons direct-mail and catalog retailing are attractive except
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133. | The average U.S. household now receives __________ direct-mail items or catalogs each week.
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134. | The Direct Marketing Association estimates that direct-mail and catalog retailing creates __________ in sales.
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135. | Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in
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136. | Higher paper costs, increased postage rates, the growing interest in do-not-mail legislation, and concern for "green" mailings have resulted in
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137. | The use of specialty catalogs from firms such as IKEA, Crate and Barrel, and L.L. Bean have been affected by all of the following factors except
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138. | In direct-mail and catalog retailing, the "P" in the acronym PURL stands for
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139. | Jim Smith is an avid fly fisherman who lives in Deer Key, Florida. For his hobby, Jim needs large rubber rafts, hip waders, special fishing rods, reels, line, and an assortment of fishing tackle and lures. There are no sporting goods stores in Deer Key, so Jim orders his fishing supplies from the L.L. Bean catalog. His supplies are generally delivered to his home within 72 hours. Jim is using a __________ to satisfy his fishing supply needs.
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140. | The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing?
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141. | Currently, the three largest television home shopping programs in the United States are
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142. | QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by
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143. | Which of the following statements regarding QVC is most accurate?
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144. | In the past, television home shopping programs have attracted mostly
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145. | Some experts suggest that television shopping programs are becoming a modern version of __________ by combining elements of reality TV programs, talk shows, and infomercials.
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146. | Which type of utility is created by online shopping?
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147. | The term bricks and clicks refers to __________ and __________, respectively.
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148. | Walmart recently introduced "Site-to-Store" service that
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149. | Online retail purchases by consumers can be the result of several very different approaches, including (1) using a shopping "bot" to search for a product at locations with the best price, (2) participating in an online auction, (3) going directly to online malls, and (4) __________.
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150. | Online retail purchases by consumers can be the result of several very different approaches, including (1) paying dues to become a member of an online discount service, (2) participating in an online auction, (3) going directly to online malls, and (4) __________.
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151. | Online retail purchases by consumers can be the result of several very different approaches, including (1) paying dues to become a member of an online discount service, (2) using a shopping "bot" to search for a product at locations with the best price, (3) going directly to online malls, and (4) __________.
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152. | Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period. Consumers must then visit the site to purchase the sale items. Which of the following retailing websites offer these limited time "flash sales"?
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153. | One of the biggest problems online retailers face is that nearly __________ percent of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites.
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154. | One of the biggest problems online retailers face is that nearly two-thirds of online shoppers make it to "checkout" and then leave the website to compare shipping costs and prices on other sites. Of the shoppers who leave, __________ percent do not return.
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155. | Experts suggest that online retailers should think of their websites as __________ if they are to attract and retain customers.
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156. | Using the telephone to interact with and sell directly to consumers is referred to as
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157. | According to the Direct Marketing Association, annual telemarketing sales exceed
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158. | In the telemarketing industry, issues such as __________, ethical guidelines, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses.
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159. | In the telemarketing industry, issues such as consumer privacy, __________, and industry standards have become a topic of discussion among consumers, Congress, the Federal Trade Commission (FTC), and businesses.
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160. | Which of the following statements regarding telemarketing is most accurate?
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161. | As a result of legislation, consumers who do not want to receive telephone calls related to company sales efforts can
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162. | The sales of products and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as
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163. | Sales of goods and services to consumers through personal interactions and demonstrations in their homes or offices is referred to as direct selling, or
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164. | Direct selling, sometimes called __________, involves direct sales of goods and services to consumers through personal interactions and demonstrations in their home or office.
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165. | Companies such as Avon, Fuller Brush, Mary Kay, and World Book are examples of firms that use
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166. | Direct selling is likely to continue to have strong growth in markets
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167. | Growth in the direct-selling industry is the result of two trends: direct-selling retailers are expanding into markets outside the United States, and
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168. | Growth in the direct-selling industry is the result of two trends—a growing number of companies are using direct selling to reach consumers who prefer one-on-one customer service and a social shopping experience rather than online shopping or big discount stores, and
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169. | Which of the following statements regarding direct selling is most accurate?
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170. | A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of
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171. | The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is the
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172. | The retail positioning matrix is an analytical tool that
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173. | The vertical dimension of the retail positioning matrix is
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174. | The horizontal dimension of the retail positioning matrix is
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175. | The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and
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176. | The value added dimension of the retail positioning matrix includes elements such as location, prestige, and
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177. | The value added dimension of the retail positioning matrix includes elements such as location, product reliability, and
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178. | The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the
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179. | The retailing mix refers to the activities related to the management of and the merchandise in the store, which includes
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180. | Retailing mix refers to the activities related to managing the store and the merchandise in the store, which includes
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181. | When developing retailing strategies, marketers use what is called the retailing mix, which includes
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182. | The retailing mix includes all of the following except
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183. | When developing marketing strategies, marketing managers use the elements of the marketing mix, which includes product, price, place, and promotion. In a similar fashion, when developing retailing strategies, marketers use what is called the retailing mix, which includes
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184. | When setting prices for merchandise, retailers must decide on the markup, the markdown, and the __________ for markdowns.
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185. | Markup refers to
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186. | The amount added to the cost the retailer paid for a product to reach the final selling price is referred to as
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187. | The __________ is a financial term that measures the dollars added to the cost the retailer paid for a product to arrive at the initial selling price.
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188. | Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is her markup in dollar terms?
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189. | Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. What is the percentage markup based on the selling price?
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190. | The difference between the retailer's cost and the initial selling price is referred to as
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191. | A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the original markup?
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192. | A maintained markup is
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193. | The difference between the final selling price and the retailer's cost is referred to as the
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194. | Another term for gross margin is
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195. | Another term for maintained markup is
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196. | A retailer bought a collectible Precious Moments figurine for $26. She sets the initial selling price at $60. The final selling price was $52. What was the maintained markup?
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197. | Jane Westerlund owns a small retail picture frame store in a local strip mall. She just bought 10 picture frames from a promising woodworker for $36 each. Based on market conditions, she will sell these for $100 each. Recently, however, sales have been a bit slow. Jane decides to reduce the price for the frames to $80. What is her maintained markup in dollar terms?
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198. | Discounting a product when the product does not sell at the original price is referred to as
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199. | Markdown refers to
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200. | Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the __________ of markdowns.
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201. | When retailers set prices on new models or styles of products, the price of existing models often is __________ to quickly sell them.
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202. | Often new models or styles force the price of existing models to be
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203. | To increase the demand for complementary products, the price of a product often is
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204. | Markdowns can be used to
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205. | Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to
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206. | The largest inventory of wedding dresses in the Southeast can be found at Low's Bridal and Formal in Brinkley, Arkansas. From December 26 to January 16, a prospective bride shopping at Low's can find gowns once priced at $6,000 for $2,999 and $800 gowns for $399. The reduced prices of these gowns are reflected in which retail pricing strategy?
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207. | When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to "move" it. Paulette was able to purchase the dress because of
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208. | According to the textbook, recent research indicates that the timing of __________ might affect future sales because frequent promotions increase consumers' ability to remember regular prices.
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209. | Emphasizing consistently low prices and eliminating most markdowns is referred to as
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210. | As part of their regular retail pricing strategy, some retailers will emphasize consistently low prices and eliminate most markdowns. This practice is referred to as
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211. | Walmart and Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called
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212. | Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation?
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213. | Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation?
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214. | Many retailers advocate __________ strategy, a pricing strategy that may not offer the lowest prices but does try to create value for customers through its service and the total buying experience.
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215. | Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices, but they try to create value for customers. What decision factor becomes important in this situation?
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216. | Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers. What decision factor becomes important in this situation?
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217. | Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices.
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218. | Consumers often use the prices of __________ items, such as a can of Coke, to form an overall impression of the store's prices.
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219. | Which of the following statements regarding retail pricing is most accurate?
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220. | Shrinkage refers to
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221. | The National Retail Federation estimates that about __________ percent of retail sales is lost to shrinkage.
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222. | The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.
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223. | Off-price retailing refers to the
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224. | The selling of brand name merchandise at lower than regular prices is referred to as
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225. | The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.
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226. | Merchants such as Burlington Coat Factory sell brand-name merchandise at lower than regular prices. This means that it is using
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227. | The T.J. Maxx HomeGoods retailer uses __________ pricing practice.
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228. | Savings to the consumer at off-price retailers are reported as high as __________ percent off the prices of a traditional department store.
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229. | Three common forms of off-price retailers are
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230. | An off-price retailer that requires customers to purchase an annual membership card for the privilege of shopping at the store is referred to as
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231. | A(n) __________ carries 4,000 to 8,000 items and usually stocks just one brand of appliance or food product.
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232. | Sam's Club and Costco are examples of
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233. | All of the following are characteristics of warehouse clubs except
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234. | A variation of off-price retailing includes
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235. | Nordstrom Rack and the Gap Factory Store allow retailers to sell excess merchandise and still maintain an image of offering merchandise at full price in their primary stores. These are referred to as
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236. | Which of the following statements about outlet stores is false?
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237. | Another name for an extreme-value retailer is
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238. | Off-price stores that attract customers who want value and appeal to customers who like a "corner store" environment rather than a large supercenter experience are referred to as
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239. | Family Dollar, Dollar General, and the Dollar Tree are examples of which type of retailer?
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240. | Most stores today are near several others in one of five settings that include all of the following except
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241. | Most stores today are near several others in one of five settings: the central business district, the community shopping center, the strip mall, the power center, or the
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242. | Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the
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243. | Most stores today are near several others in one of five settings: the central business district, the regional center, the community shopping center, the strip mall, or the
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244. | Central business district refers to
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245. | The oldest retail setting, located in the community's downtown area, is referred to as
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246. | Consumers often view central business district shopping as less convenient because of the lack of parking, higher crime rates, and
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247. | Regional shopping center refers to a
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248. | A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores, is referred to as
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249. | Large shopping areas often contain two or three __________ stores, which are well-known national or regional stores such as Sears, Saks Fifth Avenue, and Bloomingdale's.
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250. | Which of the following stores are most likely to be anchor stores at a regional shopping center?
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251. | The West Edmonton Mall in Alberta, Canada, is a conglomerate of more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels. This retail complex is the largest example of
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252. | A retail location that typically has one primary store (usually a department store branch) with 20 to 40 smaller outlets serving a population of consumers who are within a 10- to 20-minute drive is referred to as
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253. | A community shopping center is a
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254. | A cluster of neighborhood stores, whose composition is typically unplanned and serves people who are within a 5- to 10-minute drive is referred to as a
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255. | A strip mall is a
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256. | Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually
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257. | A huge shopping strip with multiple anchor (or national) stores is referred to as a
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258. | Large strip malls that often have two to five anchor stores, and often a supermarket that brings shoppers on a weekly basis, are referred to as
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259. | Texas-based Whole Foods supermarkets target people who want to eat healthy. The stores use placards throughout, which tell shoppers about the farmers who grew and harvested the various products sold. This use of signage to provide consumer information is a part of which element of the retailing mix?
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260. | Loblaws, a Canadian supermarket, features fruits and vegetables piled high on tables that have umbrellas. The idea behind this arrangement was to give Loblaws "a market feel." In terms of the retailing mix, this tactic is related to
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261. | In the late 1950s, Pierre Martineau described __________ as "the way in which the store is defined in the shopper's mind."
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262. | Price ranges, store layouts, and breadth and depth of merchandise lines are considered to be the __________ of a store's image.
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263. | Intangibles, such as a sense of belonging, excitement, style, or warmth, are considered to be __________ of a store's image.
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264. | Impressions of the corporation that operates the store, the category or type of store, the product categories in the store, the brands in each category, merchandise and service quality, and the marketing activities of the store all contribute to the store's
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265. | Store layout, colors, lighting, and music are all considered part of a store's retail
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266. | The music played in the grocery store has a slow tempo to get shoppers to stay longer and hopefully put more items in their cart. Music is part of the grocery store's
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267. | The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as
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268. | An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category, is referred to as
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269. | Managing the breadth and depth of merchandise available from many manufacturers requires retail buyers who are
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270. | The marketing metrics related to a retailer's customers include all of the following except
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271. | The marketing metrics related to a retailer's products or merchandise include all of the following except
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272. | The marketing metrics related to a retailer's finances include all of the following except
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273. | A common financial indicator of how effectively retail space is used to generate revenue can be calculated by determining
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274. | An indicator of how effectively retail space is used to generate revenue is called
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275. | Sales per square foot is calculated by dividing
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276. | Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The calculation for this indicator is arrived at by determining the __________ for its store and comparing it against the same indicator for all of the other local pizza outlets.
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277. | A financial indicator used to compare the increase in sales of stores that have been open for the same period of time is referred to as
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278. | An indicator used to compare the increase in sales of stores that have been open for the same period of time is called
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279. | The calculation for same-store sales growth is
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280. | The description of how new forms of retail outlets enter the market is referred to as the
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281. | The wheel of retailing refers to
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282. | Many fast-food retailers, including McDonald's and Burger King, have followed a predictable pattern of how new forms of retail outlets enter the marketplace. McDonald's has evolved from a relatively simple restaurant with low margins, low prices, limited product offerings, and low institutional status to a worldwide chain with higher margins, high status, and a diverse menu of products. This evolution of McDonald's restaurants is consistent with the
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283. | Retail outlets, like products, experience the process of growth and decline, which is referred to as the
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284. | Retail life cycle refers to
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285. | The four stages of the retail life cycle are
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286. | In the retail life cycle, __________ is the stage of emergence of a retail outlet, with a sharp departure from existing competition.
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287. | According to the retail life cycle, in which stage would market share rise gradually, although profits may be low because of start-up costs?
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288. | Which type of outlet is most likely in its early growth stage of the retail life cycle?
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289. | Both market share and profit achieve their greatest growth rates during which stage of the retail life cycle?
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290. | During which stage of the retail life cycle do companies establish multiple outlets?
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291. | The key goal for retailers in the accelerated development phase of the retail life cycle is to
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292. | Accelerated development in the retail life cycle is similar to which stage in the product life cycle?
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293. | Which type of outlet is most likely in its accelerated development stage of the retail life cycle?
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294. | The battle for market share is usually fought directly before the __________ stage, and some competitors drop out of the market.
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295. | Discounting generally takes place during which stage of the retail life cycle?
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296. | Which type of outlet is most likely in its maturity stage of the retail life cycle?
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297. | Which type of outlet is most likely in its decline stage of the retail life cycle?
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298. | __________ retailers utilize and integrate a combination of traditional store formats and nonstore formats.
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299. | Multichannel retailers are retailers that
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300. | Retailers that utilize and integrate a combination of traditional store formats and nonstore formats are referred to as
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301. | Retailers such as Williams-Sonoma that sell products through retail stores, catalogs, and online are examples of
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302. | __________ exists if multiple retail channels become complementary through a series of touch points with consumers.
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303. | In the context of omnichannel retailing, all of the following are potential consumer touch points for a retailer except
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304. | The complementary role of different communication and delivery channels is referred to as
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305. | Retailers that integrate and leverage their stores, catalogs, and websites have seen
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306. | Independently owned firms that take title to the merchandise they handle are referred to as
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307. | Merchant wholesalers are independently owned firms that __________ the merchandise they handle.
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308. | Which of the following is a type of full-service merchant wholesaler?
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309. | Wholesalers that carry a broad assortment of merchandise and perform all channel functions are referred to as a
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310. | Which type of wholesaler carries a broad assortment of merchandise and performs all channel functions?
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311. | General merchandise wholesalers
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312. | The wholesalers most prevalent in the hardware, drug, and clothing industries are
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313. | A wholesaler that carries a narrow range of products and performs all channel functions is referred to as a
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314. | Specialty merchandise wholesalers
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315. | Which type of wholesaler offers a relatively narrow range of products but has an extensive assortment within the product lines carried?
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316. | The wholesalers that perform all channel functions and are found in the health foods, automotive parts, and seafood industries would be
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317. | Which of the following is a type of full-service merchant wholesaler?
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318. | The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and
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319. | The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and
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320. | The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and
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321. | The four major types of limited-service merchant wholesalers are rack jobbers, cash and carry wholesalers, truck jobbers, and
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322. | The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, cash and carry wholesalers, and
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323. | Rack jobbers are wholesalers that
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324. | A limited-service wholesaler that furnishes shelves that display merchandise in stores, performs all channel functions, and sells on consignment to retailers is referred to as a
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325. | Selling on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold, is characteristic of which limited-service wholesaler?
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326. | A limited-service wholesaler that performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a
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327. | Which type of wholesaler traditionally sells hosiery, toys, and health and beauty items?
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328. | A store chain is looking for a wholesaler to furnish its health and beauty display shelves, perform all channel functions, and sell to it on consignment. Which of the following would be the wisest wholesaler choice for its requirements?
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329. | Cash and carry wholesalers
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330. | Wholesalers that take title to merchandise but sell only to buyers that call on them, pay for and move/take away the merchandise themselves are referred to as
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331. | Cash and carry wholesalers
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332. | Drop shippers
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333. | Another name for a drop shipper is a
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334. | Wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as
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335. | Wholesalers that simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer are referred to as
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336. | Coal, lumber, and chemicals, which are sold in extremely large quantities, are traditionally sold by which type of wholesaler?
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337. | Which of the following firms has made the wisest wholesaler choice for its product?
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338. | The term truck jobbers refers to wholesalers that
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339. | Wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers are referred to as
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340. | Wholesalers that handle a limited assortment of fast-moving or perishable items that are sold for cash directly from trucks in their original packages are referred to as
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341. | Bakery items, dairy products, and meat that are sold for cash in their original packages are traditionally sold by which type of wholesaler?
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342. | A __________ most likely would use truck jobbers to distribute its products.
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343. | Which of the following firms has made the wisest wholesaler choice for its product?
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344. | Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers?
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345. | Manufacturers' agent refers to agents who
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346. | Intermediaries that work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory are referred to as
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347. | Another name for a manufacturer's agent is a
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348. | A grocery manufacturer that is seeking an agent that would act on its behalf on a permanent basis and receive a commission should use a
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349. | Selling agents are agents that
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350. | Intermediaries that represent a single producer and are responsible for the entire marketing function of that producer are referred to as
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351. | Intermediaries that represent a single producer and are responsible for designing promotional plans, setting prices, determining distribution policies, and making recommendations on product strategy are referred to as
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352. | Carla's Cards uses a __________ to sell and market the entire line of greeting cards. It designs promotional plans, sets prices, determines distribution policies, and makes recommendations to Carla on product strategy.
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353. | Brokers are independent firms or individuals who
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354. | Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales are referred to as
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355. | Originally, filters for Mr. Coffee electric-drip coffeemakers were sold through appliance and mass merchandise stores. If the company decided to sell the filters in grocery stores where customers purchased their coffee, what type of intermediaries would the company most likely hire?
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356. | A unique broker that acts in many ways like a manufacturer's agent is a food broker, representing buyers and sellers in the grocery industry. Food brokers differ from conventional brokers because they act on behalf of producers on a permanent basis and
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357. | Freightfinder.com is an Internet company that is called a "go-between." If a trucker needs to find a load for a particular trade lane, he or she can visit this site, list the price and available truck space, and find a company that needs a shipment moved. Since the purpose of this website is to put buyer and sellers together so that a single sale can be made, this website can be categorized as
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358. | A business in Kansas City, Missouri, looking to rent office space should use __________ to help it locate the most suitable space at the best possible rate.
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359. | Wholly owned extensions of the producer that perform wholesaling activities are referred to as
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360. | Unlike merchant wholesalers, agents, and brokers, manufacturers' branches and sales offices are __________ that perform wholesaling activities.
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361. | A manufacturer's branch office
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362. | A manufacturer's sales office
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363. | A wholly owned extension of the producer that does not carry inventory, typically performs only a sales function, and is an alternative to agents and brokers is referred to as a
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364. | Similar to the West Edmonton Mall in Alberta, Canada, with shopping, restaurants, hotels, and a theme park, the Mall of America is a variation of
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365. | Key targets for Mall of America are
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366. | To continue to be successful, Mall of America must
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Short Answer Questions
367. | Name the four utilities offered by retailers and identify a retailer that provides that utility.
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368. | What is the value of retailing for consumers and the economy?
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369. | Explain the global impact of retailing.
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370. | Briefly describe the three ways retail outlets can be classified.
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371. | Briefly describe the advantages of being an independent retailer and the benefits an independent retailer can offer customers.
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372. | Explain the relationship between a franchisee and a franchisor.
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373. | Briefly describe the two general types of franchises.
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374. | Briefly describe the three levels of service offered by retail outlets.
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375. | Explain the difference between breadth of line and depth of line. Be sure to include the definition of scrambled merchandising in your explanation.
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376. | Explain the difference between a hypermarket and a supercenter.
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377. | Why are vending machine prices often higher than those in a retail store?
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378. | Explain why direct mail and catalogs are an attractive form of retailing.
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379. | Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.
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380. | What is the retailing mix?
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381. | Explain the difference between a markup, an original markup, and a maintained markup.
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382. | Explain what a markdown is and its timing (i.e., when a retailer uses it).
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383. | What is off-price retailing? Identify and give an example of the three variations of off-price retailing.
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384. | List the five store locations or settings. How has the location of stores changed over the years?
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385. | What is category management and when is it used?
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386. | Explain how the wheel of retailing works.
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387. | Describe the retail life cycle.
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388. | What future changes may be expected in retailing?
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389. | Explain the difference between full-service and limited-service merchant wholesalers. List and describe the types of wholesalers that belong in each category.
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390. | Identify and describe the functions of agents and brokers.
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Document Information
Connected Book
Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley
By Roger A. Kerin, Steven W. Hartley
Explore recommendations drawn directly from what you're reading
Chapter 14 Arriving At The Final Price
DOCX Ch. 14
Chapter 15 Managing Marketing Channels And Supply Chains
DOCX Ch. 15
Chapter 16 Retailing And Wholesaling
DOCX Ch. 16 Current
Chapter 17 Integrated Marketing Communications And Direct Marketing
DOCX Ch. 17
Chapter 18 Advertising, Sales Promotion, And Public Relations
DOCX Ch. 18